Tax Exempt

[randy41]

i think they will be satisfied with your social security number..or any number that fills in all the blanks.

 

[MossRoad]

We are operating a farm and that is why I am trying to figure out how to get a tax number, if we need one. It is hard enough to make a profit farming without paying tax where it isn't owed.

You're operating a farm but you don't have a farm number?

 

[strum456]

You're operating a farm but you don't have a farm number?

It seems that you now have good understanding of my problem. Thank you for the useful input.

 

[strum456]

My place is in NY State, but a quick search found that you should present a filled out REV-1220 PA Exemption Certificate

The info here states: Using the REV-1220, exemptions from tax can be claimed because: ...the property or service is being directly used in manufacturing, mining, dairying, processing, farming and/or shipbuilding;...

Here is another PDF (page 5) that cover the need for a tax exempt number: TAX EXEMPTION CERTIFICATES When purchasing items of tangible personal property or services that are considered to be tax exempt, the farmer must complete a PA Exemption Certificate (REV-1220) for the supplier. Farmers are not required to obtain a Sales Tax license number or submit a Sales Tax license number to a supplier prior to receiving a Sales Tax exemption on purchases of exempt tangible personal property directly used in farming operations. One exemption certificate may cover several purchases.

Note that vendors are not required to accept the 1220 form: The vendor is not required to accept the Exemption Form. In the event a qualified business is denied exemption from Sales and Use Tax, the business will be required to pay the tax and petition for refund with the Board of Appeals.

I suggest prepare a stack of the forms partially filled out with your information typed in and check the applicable boxes when purchasing and present the form at the store.

Thanks. I will fill out some of those forms and give it a try. I believe it is section 7 that I would explain why I do not need a tax exempt number. I could just explain that the items are "directly used in farming operations".

 

[strum456]

I believe mtb is correct on the schedule F filing.

Here is an interesting publication from Penn State that lays out "Who is considered a farmer"

Thanks James. I hadn't stumbled across that info from Penn State. That clarified a few of my questions.

 

[MossRoad]

It seems that you now have good understanding of my problem. Thank you for the useful input.

Look, I'm not tying to be a smart arse. I have a tree farm and I have a farm number. I've had to use it a few times when purchasing trees. Pretty much any purchase you try to make for the farm tax exempt, the vendor asks for the farm number. That's why its surprising that you don't have a tax number if you own a farm, that's all.

 

[randy41]

Look, I'm not tying to be a smart arse. I have a tree farm and I have a farm number. I've had to use it a few times when purchasing trees. Pretty much any purchase you try to make for the farm tax exempt, the vendor asks for the farm number. That's why its surprising that you don't have a tax number if you own a farm, that's all.

tax numbers are state issues and he's not in the same state as you. the rules here in virginia are more like yours.

 

[MossRoad]

tax numbers are state issues and he's not in the same state as you. the rules here in virginia are more like yours.

That explains it a bit clearer. Thanks.

 

[dwhite]

Your local FSA (farm service admin) office will have your farm number. That is not what you need for tax exempt, though. Here in VA, each store (co-op, Tractor Supply) has a form you have to sign they keep on file. For my co-op, they bill me monthly and automatically don't tax on items that meet tax exempt criteria. At Tractor Supply I have to tell them I'm tax exempt when checking out. They take my phone number and my account (or tax exempt status) pops up on their screens. Then I have to sign each time. Good luck.

 

[fishheadbob]

Every state does things a little differently. In N.Y. I basically download the Farmers tax exemption form and give it the cashier once as I've checked the Blanket Certificate box. The cashier, or maybe the service desk, enters the info, the computer retains it forever, and I'm good to go. TSC is more familiar with the process than Home Depot or Lowes, but they can all figure it out especially if you set it up in a rural store vs. a suburban store. When the cashier asks for a tax # I respond that (in N.Y.) farmers don't need one, her response is usually "maybe so, but my register does" which is bs but I'm dealing with a 19 year old, minimum wage, could care less type employee. I usually tell her to use 8 zeroes and a 1. Keeps her happy.
Hardest thing was when I worked for the Feds and we'd run out of pens or something minor. Try convincing that same cashier that the Federal government's powers supercede the sates' taxing powers. That's where I came up with the 8 zeroes and a 1.